Maintain 'hold' on DLF Ltd - Geojit BNP Paribas Financial Services

- 1QFY13 revenue at Rs. 2330 crore is 7% lower yoy and 15% up qoq. Quarter revenue is better than market expectations.

- EBITDA margin came at 51%, also better than market estimates.

- However, better than expected quarterly numbers are due to one- time asset (land) sale of Rs.369 crore.

- Net debt remained unchanged at Rs.22680 crore.

- Debt remains the main overhang on the stock with FY13 repayment target of Rs.3000 crore.

- Cash flow, net of interest expenses or capex stands disappointed at negative 440 crore. Contracted sales volume has been lower than market estimates at 1.3 million sq ft against 6.8 million sq ft in 4QFY12 and 2.3 million sq ft in 1QFY12.

- Company delivered 2 million sq ft of office space in 1QFY13 and this appears to be the lone positive.

- Current assets increased to Rs.1160 crore on increase in FSI in its Gurgoan project.

- Leased 0.29 million sq ft in the quarter against 0.24 million sq ft in 4QFY12.

- Company has maintained its non-core asset sales guidance at Rs.60 billion in the next three months.

Source : Equity Bulls

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